Retail traders on Binance demonstrated significant buying activity, acquiring 6,870 BTC in a single day as the price briefly surpassed $91,400. This surge in retail interest occurred amidst a broader market pattern where Long-Term Holders (LTHs) have been actively distributing their Bitcoin holdings. This distribution by LTHs is a historical indicator often associated with market tops. The market experienced strong volatility, triggering liquidations of over $600 million in leveraged positions.
A dramatic shift in crypto market dynamics was observed during the Tuesday trading session. Following a minor price push that briefly elevated Bitcoin above $91,400, retail traders on Binance purchased 6,870 BTC. This volume represented a record for a 24-hour period, amounting to approximately $628 million.
This retail impulse encountered immediate selling pressure from more experienced investors, mirroring a classic market reversal pattern.
On-Chain Signals and Investor Behavior
The recent $5,000 drop in Bitcoin's price within a few hours validated a key on-chain signal. Data provided by on-chain analyst Amr Taha indicated that the realized capitalization for Short-Term Holders (STH) exceeded $51 billion, reaching its highest point since December 2024. This signals a substantial influx of new, potentially impatient capital entering the market.
Conversely, the realized capitalization for Long-Term Holders (LTH) moved in the opposite direction, with these investors actively distributing their supply to new retail buyers. Historically, when Long-Term Investors aggressively sell Bitcoin to retail participants, it often coincides with market tops and subsequent corrections. The recent price action appears to confirm this precedent.
Extreme Volatility and Massive Liquidations
The market is experiencing extreme turbulence due to strong volatility. Experts have noted that over $600 million in leveraged long positions were liquidated in the last 24 hours. This included a single ETH/USDC position on Binance that resulted in a loss of $14.48 million. Some analysts suggest the $5,000 BTC drop was a deliberate manipulation, designed to liquidate leverage, especially given the absence of a clear macroeconomic or regulatory catalyst.
Following its rejection from the $91,800 zone, Bitcoin has entered a consolidation phase in the $86,300 range, marking a 5% decrease in the last 24 hours. The asset is currently positioned between a key support level near $84,570, where a significant volume of Bitcoin last changed hands, and a considerable resistance ceiling around $112,340. This period is characterized by long-term investors selling Bitcoin to retail participants as the market seeks a definitive direction.